DGII updates regulations: Companies with electronic invoicing are exempt from ITBIS withholdings
The General Directorate of Internal Taxes (DGII) has taken a significant step toward the modernization of the Dominican tax system. Through the recent General Rule No. 02-2026, the entity has determined that companies acting as ITBIS withholding agents will no longer be required to apply the withholdings contemplated in General Rule 02-05 when making payments to other legal entities, provided that they comply with electronic invoicing requirements.
Exemption requirements
To benefit from this provision, the company receiving the payment must be duly authorized by the DGII as an electronic issuer. Furthermore, it is essential that the commercial transaction be formally supported by an Electronic Fiscal Receipt (e-CF).
The electronic system allows for the immediate recording and transmission of operations, which facilitates access to updated information and strengthens tax control and auditing processes.
DGIIImpact of electronic invoicing
The DGII recalled that the withholdings under Standard 02-05 were originally designed as a control mechanism at a stage where the administration did not have immediate visibility of transactions. With the mandatory implementation of electronic invoicing, supported by Law 32-23, this scenario has changed radically.
- Efficiency: The measure seeks to reduce operating costs and simplify compliance with tax obligations.
- Limited scope: The exemption is specific to withholdings under Rule 02-05; other tax withholdings established in different legal provisions remain in effect.
Consultation and entry into force process
The regulation, issued on September 16, 2026, by Director General Pedro Urrutia Sangiovanni, is the result of a public consultation process carried out between June and August of the same year. During this period, the DGII received observations from various guilds and taxpayers, focusing on issues such as the scope of the exception and the impact on companies’ cash flow.
With this update, Alofoke Deportes highlights how the tax administration is adapting its processes to the digital environment, leveraging technology to more effectively monitor commercial operations in the country.
